Cramer's 'Mad Money' Recap: A Hope-Filled Rally

Most lawn and garden equipment gets replaced every seven to eight years, he added, and with the peak in 2005, that replacement cycle should just be getting underway. Additionally, new environmental standards kick into effect Jan. 1, requiring outdoor engines meet tougher emission standards. That will do away with a lot of cheaper competition as only better engines will make the grade.

Briggs & Stratton has 40 new products hitting store shelves next year and has been aggressively cutting costs. It also sports a 2.5% dividend yield.

Driving the Market

The U.S. rental car market is back, Cramer told viewers. That's why Hertz (HTZ) is up 26% for the year while Avis Thrifty (CAR) has risen by 62%. Consolidation has been key in this industry, said Cramer, which is why there are now only four major players left standing.

Of the four, Cramer said Enterprise, the largest among them, is currently private, which leaves Hertz, Avis and ZipCar (ZIP) as investable options. He said ZipCar remains a novel concept but unfortunately has nothing proprietary, which is why the company's stock has done nothing but fall since its initial public offering.

Both Hertz and Avis are cheap, said Cramer, trading at 7.2 times earnings for Hertz and 9.6 times earnings for Avis. But Cramer said that Hertz is the best thanks to the company's acquisition of Dollar Thrifty (DTG) .

Cramer said the Dollar Thrifty deal will give Hertz 10,000 locations in the U.S. and afford it 30% market share. The deal will also minimize the company's ailing European division, which currently accounts for 18% of sales.

In the rental game, Cramer said size matters, and the combined Hertz will be able to aggressively cut costs. He noted just a 1% reduction in costs could result in upwards of 31 cents a share in earnings for the company. He was also bullish on Hertz' equipment rental business given the turn in the U.S. housing market.

No Energy on Using Natural Gas

Why doesn't America use its abundant supply of natural gas for surface vehicles? Cramer offered viewers his latest take on the situation after talking to many in the industry.

Cramer said there's no doubt using American natural gas would make North America energy-independent almost overnight. Unfortunately, there are still several major obstacles standing in the way.

It's clear Congress has no interest in adopting T. Boone Pickens' plan, which would have subsidized adoption of natural gas engines for long-haul trucks. That leaves the industry to go it alone, Cramer said, and Westport Innovations (WPRT) has been delayed in delivering the next generation of long-haul natural gas engines.